MIRA INFORM REPORT

Report No. :	507398
Report Date :	08.05.2018

IDENTIFICATION DETAILS

Name :	M.M. LUNKAD ELECTRICALS
Registered Office :	No. 42, Huriopet, Lakshman Rao Road, B.V.K. Iyengar Road Cross, Bangalore - 560 053, Karnataka
Mobile No.:	91-9844021676 [Mr. Mahaveer Chand]
Country :	India
Financials (as on) :	31.03.2017
Year of Establishment :	1991
Capital Investment :	INR 8.377 Million [As on: 31.03.2017]
IEC No.: [Import-Export Code No.]	Not Applicable [As informed by the management that firm does not have export and import]
TIN No.:	29790090612
GSTN : [Goods & Service Tax Registration No.]	29AAXPC7269E1Z5
PAN No.: [Permanent Account No.]	AAXPC7269E
Legal Form :	Sole Proprietary Concern
Line of Business :	Trader and Dealer of Electrical Goods and Accessories. [Confirmed by Management]
No. of Employees :	05 [Approximately]

RATING & COMMENTS

(Mira Inform has adopted New Rating mechanism w.e.f. 23^rd January 2017)

MIRA’s Rating :

A

Credit Rating	Explanation	Rating Comments
A	Acceptable Risk	Business dealings permissible with moderate risk of default

Maximum Credit Limit :	USD 23900 [INR 1606323.78]
Status :	Satisfactory
Payment Behaviour :	Usually Correct
Litigation :	Clear
Comments :	Subject was established in the year 1991 as a proprietorship firm and it is having satisfactory track. It is a trader and dealer of electrical goods and accessories. As per provided financials of 2017, the firm has achieved decent revenue from its operations but reported minimal profitability margin of 0.60%. Rating takes into consideration firm’s sound financial risk profile marked by adequate capital base and average debt balance sheet. The firm also derives strength from its long standing track records of business operations and comfortable liquidity position. Trade relations are reported as fair. Business is active. Payment terms are seems to be usually correct. In view of aforesaid, the firm can be considered for business dealings at usual trade terms and conditions. (Note- Site Visit report will be send in due course.)

NOTES :

Any query related to this report can be made on e-mail : infodept@mirainform.com while quoting report number, name and date.

ECGC Country Risk Classification List

Country Name	Previous Rating (30.09.2017)	Current Rating (31.12.2017)
India	A1	A1

Risk Category	ECGC Classification
Insignificant	A1
Low Risk	A2
Moderately Low Risk	B1
Moderate Risk	B2
Moderately High Risk	C1
High Risk	C2
Very High Risk	D

EXTERNAL AGENCY RATING

NOT AVAILABLE

RBI DEFAULTERS’ LIST STATUS

Subject’s name is not enlisted as a defaulter in the publicly available RBI Defaulters’ list.

EPF (Employee Provident Fund) DEFAULTERS’ LIST STATUS

Subject’s name is not enlisted as a defaulter in the publicly available EPF (Employee Provident Fund) Defaulters’ list as of 31-03-2018.

BIFR (Board for Industrial & Financial Reconstruction) LISTING STATUS

Subject’s name is not listed as a Sick Unit in the publicly available BIFR (Board for Industrial & Financial Reconstruction) list as of 08.05.2018

IBBI (Insolvency and Bankruptcy Board of India) LISTING STATUS

Subject’s name is not listed in the publicly available IBBI (Insolvency and Bankruptcy Board of India) list as of report date.

INFORMATION PARTED BY

Name :	Mr. Mahaveer Chand
Designation :	Proprietor
Contact No.:	91-9844021676
Date :	06.05.2018

LOCATIONS

Registered Office :	No. 42, Huriopet, Lakshman Rao Road, B.V.K. Iyengar Road Cross, Bangalore - 560 053, Karnataka, India
Tel. No.:	91-80-41143206/ 22204061
Mobile No.:	91-9844021676 [Mr. Mahaveer Chand]
Fax No.:	Not Available
E-Mail :	mmlunkad@gmail.com
Location :	Owned
Locality :	Commercial

SOLE PROPRIETOR

Name :	Mr. Mahaveer Chand
Designation :	Proprietor
PAN No.:	AAXPC7269E

BUSINESS DETAILS

Line of Business :	Trader and Dealer of Electrical Goods and Accessories. [Confirmed by Management]
Products/ Services :	Electrical Goods and Accessories
Brand Names :	Not Available
Agencies Held :	Not Available
Exports :	Not Available
Imports :	Not Available
Terms :
Selling :	Cash, Cheque, Credit [30 Days] and Others [RTGS]
Purchasing :	Cash, Cheque, Credit [30 Days] and Others [RTGS]

GENERAL INFORMATION

Suppliers :

Reference:	Not Divulged
Name of the Person (Designation):	--
Contact Number:	--
Since how long known:	--
Maximum limit dealt:	--
Experience:	--
Remark	--

Customers :

Wholesalers

Reference:	Not Divulged
Name of the Person (Designation):	--
Contact Number:	--
Since how long known:	--
Maximum limit dealt:	--
Experience:	--
Remark	--

No. of Employees :

05 [Approximately]

Bankers :

Bank Name:	Not Divulged
Branch:	Not Divulged
Person Name (with Designation):	--
Contact Number:	--
Name of Account Holder:	--
Account Number:	--
Account Since (Date/ Year of A/c Opening):	--
Average Balance Maintained (Optional):	--
Credit Facilities Enjoyed (CC/OD/Term Loan):	--
Account Operation:	--
Remarks:	--

Auditors :
Name :	A S Bohra and Company Chartered Accountants
Memberships :	Not Available
Collaborators :	Not Available
Associates/Subsidiaries :	Not Available

CAPITAL STRUCTURE

AS ON: 31.03.2017

Capital Investment :
Owned :	INR 8.377 Million
Borrowed :	--
Total :	INR 8.377 Million

FINANCIAL ANALYSIS

[all figures are in INR Million]

Note : Sole Proprietary and Partnership concerns are exempted from filing their financials with the Government Authorities or Registry Records.

ABRIDGED BALANCE SHEET

SOURCES OF FUNDS		31.03.2017
SHAREHOLDERS FUNDS
1] Capital Account		8.377
2] Reserves & Surplus		0.000
NETWORTH		8.377
LOAN FUNDS
1] Secured Loans		23.016
2] Unsecured Loans		16.140
TOTAL BORROWING		39.156
DEFERRED TAX LIABILITIES		0.000
TOTAL		47.533
APPLICATION OF FUNDS
FIXED ASSETS [Net Block]		5.106
Capital work-in-progress		0.000
INVESTMENT		1.724
DEFERRED TAX ASSETS		0.000
CURRENT ASSETS, LOANS & ADVANCES
	Inventories	33.225
	Sundry Debtors	22.762
	Cash & Bank Balances	1.896
	Other Current Assets	0.000
	Loans & Advances	9.166
Total Current Assets		67.049
Less : CURRENT LIABILITIES & PROVISIONS
	Sundry Creditors	24.563
	Other Current Liabilities and Provisions	1.783
Total Current Liabilities		26.346
Net Current Assets		40.703
MISCELLANEOUS EXPENSES		0.000
TOTAL		47.533

PROFIT & LOSS ACCOUNT

	PARTICULARS		31.03.2017
	SALES
		Sales	257.924
		Other Income	2.672
		TOTAL	260.596
Less	EXPENSES
		Cost of Goods Sold	249.469
		Freight Charges	0.070
		Auditor Fees	0.075
		Advertisement	0.018
		Corp Tax [Shop/Godown]	0.020
		Delivery Charges	0.126
		Discount Allowed	0.010
		Diwali Exp	0.019
		Electricity Charges	0.013
		Insurance – Godwon/ Shop	0.030
		LIC Medical Fees and Others Expenses	0.003
		News Paper and Periodicals	0.006
		Printing and Stationery	0.013
		Professional Tax	0.003
		Repairs and Maintance	0.096
		Rent Paid	0.228
		Salaries	3.629
		Shop expenses	0.065
		Travelling Charges	0.226
		Telephone Charges	0.074
		Vehicle Insurance and maintenance	0.141
		Water Charges	0.010
		TOTAL	254.344
	PROFIT/ (LOSS) BEFORE INTEREST AND DEPRECIATION AND AMORTISATION		6.252
Less	FINANCIAL EXPENSES		4.576
	PROFIT / (LOSS) BEFORE, DEPRECIATION AND AMORTISATION		1.676
Less/ Add	DEPRECIATION/ AMORTISATION		0.133
	NET PROFIT/ (LOSS)		1.543

KEY RATIOS

EFFICIENCY RATIOS

PARTICULARS	31.03.2017
Average Collection Days (Sundry Debtors / Income * 365 Days)	32.21
Account Receivables Turnover (Income / Sundry Debtors)	11.33
Average Payment Days (Sundry Creditors / Purchases * 365 Days)	0.00
Inventory Turnover (Operating Income / Inventories)	0.19
Asset Turnover (Operating Income / Net Fixed Assets)	1.22

LEVERAGE RATIOS

PARTICULARS	31.03.2017
Debt Ratio ((Borrowing + Current Liabilities) / Total Assets)	0.53
Debt Equity Ratio (Total Liability / Networth)	4.67
Current Liabilities to Networth (Current Liabilities / Net Worth)	1.93
Fixed Assets to Networth (Net Fixed Assets / Networth)	0.61
Interest Coverage Ratio (PBIT / Financial Charges)	1.37

PROFITABILITY RATIOS

PARTICULARS		31.03.2017
Net Profit Margin ((PAT / Sales) * 100)	%	0.60
Return on Total Assets ((PAT / Total Assets) * 100)	%	2.09
Return on Investment (ROI) ((PAT / Networth) * 100)	%	18.42

SOLVENCY RATIOS

PARTICULARS	31.03.2017
Current Ratio (Current Assets / Current Liabilities)	4.26
Quick Ratio ((Current Assets – Inventories) / Current Liabilities)	2.20
G-Score Ratio Financial (Networth / Total Assets)	0.11
G-Score Ratio Debt (Debts / Equity Capital)	4.67
G-Score Ratio Liquidity (Total Current Assets / Total Current Liabilities)	4.26

Total Liability = Short-term Debt + Long-term Debt + Current Maturities of Long-term debts

LOCAL AGENCY FURTHER INFORMATION

Sr. No.	Check list by info agents	Available in Report (Yes/No)
1	Year of establishment	Yes
2	Constitution of the entity -Incorporation details	Yes
3	Locality of the entity	Yes
4	Premises details	No
5	Buyer visit details	--
6	Contact numbers	Yes
7	Name of the person contacted	Yes
8	Designation of contact person	Yes
9	Promoter’s background	No
10	Date of Birth of Proprietor / Partners / Directors	No
11	Pan Card No. of Proprietor / Partners	Yes
12	Voter Id Card No. of Proprietor / Partners	No
13	Type of business	Yes
14	Line of Business	Yes
15	Export/import details (if applicable)	No
16	No. of employees	Yes
17	Details of sister concerns	No
18	Major suppliers	No
19	Major customers	No
20	Banking Details	No
21	Banking facility details	No
22	Conduct of the banking account	--
23	Financials, if provided	Yes
24	Capital in the business	Yes
25	Last accounts filed at ROC, if applicable	No
26	Turnover of firm for last one year	Yes
27	Reasons for variation <> 20%	--
28	Estimation for coming financial year	No
29	Profitability for last one year	Yes
30	Major shareholders, if available	No
31	External Agency Rating, if available	No
32	Litigations that the firm/promoter involved in	--
33	Market information	--
34	Payments terms	Yes
35	Negative Reporting by Auditors in the Annual Report	No

CMT REPORT (Corruption, Money Laundering & Terrorism]

The Public Notice information has been collected from various sources including but not limited to: The Courts, India Prisons Service, Interpol, etc.

1] INFORMATION ON DESIGNATED PARTY

No records exist designating subject or any of its beneficial owners, controlling shareholders or senior officers as terrorist or terrorist organization or whom notice had been received that all financial transactions involving their assets have been blocked or convicted, found guilty or against whom a judgement or order had been entered in a proceedings for violating money-laundering, anti-corruption or bribery or international economic or anti-terrorism sanction laws or whose assets were seized, blocked, frozen or ordered forfeited for violation of money laundering or international anti-terrorism laws.

2] Court Declaration :

No records exist to suggest that subject is or was the subject of any formal or informal allegations, prosecutions or other official proceeding for making any prohibited payments or other improper payments to government officials for engaging in prohibited transactions or with designated parties.

3] Asset Declaration :

No records exist to suggest that the property or assets of the subject are derived from criminal conduct or a prohibited transaction.

4] Record on Financial Crime :

Charges or conviction registered against subject: None

5] Records on Violation of Anti-Corruption Laws :

Charges or investigation registered against subject: None

6] Records on Int’l Anti-Money Laundering Laws/Standards :

Charges or investigation registered against subject: None

7] Criminal Records

No available information exist that suggest that subject or any of its principals have been formally charged or convicted by a competent governmental authority for any financial crime or under any formal investigation by a competent government authority for any violation of anti-corruption laws or international anti-money laundering laws or standard.

8] Affiliation with Government :

No record exists to suggest that any director or indirect owners, controlling shareholders, director, officer or employee of the company is a government official or a family member or close business associate of a Government official.

9] Compensation Package :

Our market survey revealed that the amount of compensation sought by the subject is fair and reasonable and comparable to compensation paid to others for similar services.

10] Press Report :

No press reports / filings exists on the subject.

CORPORATE GOVERNANCE

MIRA INFORM as part of its Due Diligence do provide comments on Corporate Governance to identify management and governance. These factors often have been predictive and in some cases have created vulnerabilities to credit deterioration.

Our Governance Assessment focuses principally on the interactions between a company’s management, its Board of Directors, Shareholders and other financial stakeholders.

CONTRAVENTION

Subject is not known to have contravened any existing local laws, regulations or policies that prohibit, restrict or otherwise affect the terms and conditions that could be included in the agreement with the subject.

FOREIGN EXCHANGE RATES

Currency	Unit	Indian Rupees
US Dollar	1	INR 67.11
UK Pound	1	INR 90.85
Euro	1	INR 80.12

INFORMATION DETAILS

Information Gathered by :	SHA
Analysis Done by :	PRS
Report Prepared by :	RUP

SCORE FACTORS

DEMERIT POINTS
--BANK CHARGES	YES/NO	YES
--LITIGATION	YES/NO	NO
--OTHER ADVERSE INFORMATION	YES/NO	NO
MERIT POINTS
--SOLE DISTRIBUTORSHIP	YES/NO	NO
--EXPORT ACTIVITIES	YES/NO	NO
--AFFILIATION	YES/NO	NO
--LISTED	YES/NO	NO
--OTHER MERIT FACTORS	YES/NO	YES

RATING EXPLANATIONS

Credit Rating	Explanation	Rating Comments
A++	Minimum Risk	Business dealings permissible with minimum risk of default
A+	Low Risk	Business dealings permissible with low risk of default
A	Acceptable Risk	Business dealings permissible with moderate risk of default
B	Medium Risk	Business dealings permissible on a regular monitoring basis
C	Medium High Risk	Business dealings permissible preferably on secured basis
D	High Risk	Business dealing not recommended or on secured terms only
NB	New Business	No recommendation can be done due to business in infancy stage
NT	No Trace	No recommendation can be done as the business is not traceable

NB is stated where there is insufficient information to facilitate rating. However, it is not to be considered as unfavourable.

This score serves as a reference to assess SC’s credit risk and to set the amount of credit to be extended. It is calculated from a composite of weighted scores obtained from each of the major sections of this report. The assessed factors are as follows:

· Financial condition covering various ratios

· Company background and operations size

· Promoters / Management background

· Payment record

· Litigation against the subject

· Industry scenario / competitor analysis

· Supplier / Customer / Banker review (wherever available)

PRIVATE & CONFIDENTIAL : This information is provided to you at your request, you having employed MIPL for such purpose. You will use the information as aid only in determining the propriety of giving credit and generally as an aid to your business and for no other purpose. You will hold the information in strict confidence, and shall not reveal it or make it known to the subject persons, firms or corporations or to any other. MIPL does not warrant the correctness of the information as you hold it free of any liability whatsoever. You will be liable to and indemnify MIPL for any loss, damage or expense, occasioned by your breach or non observance of any one, or more of these conditions

This report is issued at your request without any risk and responsibility on the part of MIRA INFORM PRIVATE LIMITED (MIPL) or its officials.

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